CBP Expected to Pilot Use of Document Image System for IPR Violations
CBP is expected to begin to test a program that would allow importers of branded merchandise to send information to the agency through the Document Image System (DIS), said Karen Kenney of Liberty International, who is current co-chair of the Advisory Committee on Commercial Operations (COAC) Trade Enforcement and Revenue Collection Subcommittee. Kenney, who is also chairman of the Coalition of New England Companies for Trade (CONECT) discussed COAC's ongoing work during a CONECT conference in Newport, R.I. on April 1. While not definite, a Federal Notice for the pilot may be out in early summer, she said.
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The COAC previously said it would begin looking closer at the use of the DIS after a separate effort, the Distribution Chain Management initiative, was put on hold (see 14022520). A DIS-based system would be especially useful because the evidence would be provided at the time of cargo release, said Kenney. "If you're a licensee of branded merchandise, you can transmit a copy of your license agreement," for instance, she said. This would potentially allow the importer to avoid an exam, she said.
Another "potential program" would allow for importers to voluntarily disclose to CBP that it unknowingly brought in counterfeit merchandise, said Kenney. The importer could then destroy the goods without penalty and "maybe share some intelligence with CBP on how that import transaction took place," while keeping the importer's record clean, she said. Kenney also urged companies to consider to take part in the coming pilot for combined Customs-Trade Partnership Against Terrorism (C-TPAT) and the Importer Self Assessment (ISA) programs. The pilot, which will likely be announced in the near future (see 14031203), may be open to non-resident importers and potentially non-resident importers beyond Canada, she said.
While CBP has not officially published a proposal to revise Form 5106 (Importer ID Input Record), it has confirmed some of the new requirements that would be included, she said. For instance, new filings would have to include social security numbers or passport information for company officers, said Kenney. Also, a complete listing and details on company officers would be required, she said. The importance of those changes will quickly be apparent once "you go into your boss's office or your boss's boss's office and ask them for a copy of their passport," said Kenney. The changes will be closely watched because the COAC Role of the Broker subcommittee in November delayed development of importer bond fide requirements until CBP updated Form 5106 (see 13111801). Once finalized, any changes would only apply to new Form 5106 filings.